Rachel Reeves has said something unexpected and controversial. She’s admitted a truth that might be unacceptable at a Labour Party conference: economic growth is more important than achieving Net Zero.
Speaking at the World Economic Forum in Davos, Reeves emphasized that growth should take priority, stating that decisions on major projects can’t always result in a “no.” She made it clear that boosting economic growth is the government’s top priority, even if it means putting emissions targets on the back burner.
This position comes as she prepares for a debate over airport expansions, setting up a clash with Energy and Climate Change Secretary Ed Miliband, who recently called Net Zero “unstoppable.”
For years, politicians have promoted visions of a “green growth” future—Boris Johnson’s wind power plans, Joe Biden’s Green New Deal, and Labour’s promise of 650,000 green jobs by 2030.
However, Reeves has now acknowledged that reducing emissions does come with trade-offs for economic growth. As costs rise and the government faces financial constraints, Net Zero is starting to look like a luxury they can’t afford.
While Reeves’s comments signal a shift, Labour still seems reluctant to embrace solutions like fracking or North Sea oil exploration. Even her push for airport expansions may face challenges from green activists and legal obstacles.
Despite these challenges, Reeves’s remarks are a step toward a more realistic approach, but Labour will need to go further to prioritize prosperity over idealism. If they don’t, economic stagnation might continue to be the norm.
